(Reuters) - British sofa and carpet retailer ScS Group said on Tuesday it was in talks for a potential deal to buy Sofa.com Ltd.
Sky News reported earlier in the day that billionaire Mike Ashley, who controls British sportswear retailer Sports Direct, was competing with ScS to buy Sofa.com.
Sofa.com, put up for sale last month, is thought to have been hurt when House of Fraser went under and a number of its outlets were shuttered, Sky News reported. Sofa.com has concession counters in a number of House of Fraser stores.
ScS, which stands for "Sofa Carpet Specialist", said in October it would stop selling its sofas and carpets at House of Fraser stores from January, saying the partnership had ceased to be beneficial since Ashley bought the collapsed department store group.
Sports Direct did not immediately respond when contacted by Reuters.
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Saumyadeb Chakrabarty)